The A401 provides voids in which the parties can complete the details of their agreement. Where the Subcontractor submits shop drawings, project data and other submissions, the Subcontractor shall declare to the Contractor that it has (i) verified and approved all such shop drawings, product data and other submissions, (ii) verify the field measurements and construction criteria in the field and (iii) verify and coordinate the information contained in all workshop drawings, product data and other submissions. As a result of this new language, the subcontractor is fully responsible for or “owns” errors or inaccuracies in its submissions. Here are the main advantages for subcontractors: while the subcontractor usually does not have to pay for the contract itself, he may have to pay to modify the document. As mentioned elsewhere, this A401 may not be the best form for your needs. Before agreeing to use it, let it be looked at by a lawyer. Some view the AIA contract as a preference for the project owner, as it imposes most of the burden on the contractor in the event of a delay, modification or even payment. The contract assumes that the design package is quite perfect. It is the contractor`s responsibility to demonstrate the problems posed by the project.
Section 4.8 of A401 gives the subcontractor the explicit right to leave the employment if the GC does not pay the subcontract within one week of the date of the contract. The agreement gives them this right “without prejudice to other available remedies”, which means that the subcontractor is not required to find an alternative solution before carrying out his work. The roles of the contractor and subcontractor in the project have been clarified and defined below. It is significant that these representatives have the power to bind the contractor or subcontractor in all matters subject to authorization. Therefore, contractors and subcontractors should carefully choose their respective representatives, as they are bound by their decisions. However, the A401 automatically supports the terms of higher agreements between the main contractor and the owner. The AIA establishes a large number of contracts that may apply in this scenario depending on the nature of the project. Two of the most common are the A101 Owner-Contractor Agreement (for a lump sum project) and the A201 (general conditions of the construction contract). Subcontractors should read and understand all AIA contract documents related to their project. If the subcontractor does not pay the subcontractor through no fault of the subcontractor, the subcontractor may, within seven days from the date on which payment is to be made in accordance with this Agreement, without prejudice to other available remedies, terminate the subcontractor`s work after seven additional days of notification to the contractor until payment of the amount due has been received. […] The subcontractor must either provide on behalf of the owner all specific materials, equipment or other guarantees, or be transferred to the owner. This new provision is a flow-down language, given that the contractor has a similar obligation to the owner under the main contract AIA A201.
The above list of revisions does not contain all the revisions made by the AIA in the 2017 version of the standard form subcontract. Instead, this article identifies some of the most important changes. Before using the 2017 form, the user must carefully compare the 2017 revisions with the 2007 form. . . .